Background: Hasbro is one of the world's largest toy and games companies, worth nearly $12 billion USD. Its portfolio includes iconic brands such as Transformers, Monopoly, Clue, G.I. Joe, and Mr. Potato Head. Despite generating more than $4 billion USD in annual revenue, the company has faced a difficult few years with weaker toy sales, layoffs, and a broader strategic rethink.

What happened: Now, Hasbro is launching a new division called Sixth Wall, specifically focused on AI-powered character licensing. That means businesses will be able to license the voices and personalities of some of Hasbro's best-known characters. Think: Optimus Prime, Megatron, Cobra Commander, Mr. Monopoly, Mr. Potato Head and Peppa Pig.  

What else: The idea is that companies can use AI to have these characters speak directly to customers in branded experiences. It means that Hasbro is looking to expand its intellectual property business beyond just traditional toys, games, and merchandise. By turning its library of characters into licensable AI assets, it opens up an entirely new revenue stream for the toymaker.

What's the key learning?

💡 IP licensing is when a brand that owns a character, logo, or likeness lets someone else use it... for a fee. Think of it as renting out a brand's personality. The owner keeps control of the intellectual property while allowing others to use it under a licensing agreement.  

💡 It's already a massive global industry. The IP licensing market was worth around $340 billion in 2023, and AI is creating new ways for companies to monetise existing characters, brands, and franchises without having to create completely new products.  

💡 Hasbro's partnership positions it as an early mover in AI character voice licensing. Disney tried a version of this with OpenAI's Sora platform, but that deal collapsed when Sora shut down. So, if Hasbro's model works, it could become a blueprint for other companies looking to monetise on characters that are sitting on a shelf.